CHINA STOCK ANALYSIS - 51Job - GROWTH STOCKS

TL;DR

Chinese online job provider 51job.com shows strong revenue growth and positive fundamentals, but its stock is currently overvalued.

Transcript

good day fellow investors let's continue with our analysis of Chinese growth stocks in today's companies 51 job com so it's an online job provider CV database for Chinese people that are looking for jobs and connecting them outsourcing them to big companies it's an online store it's going on so offline so a lot of growth there are a lot of acquisit... Read More

Key Insights

• 💪 51job.com has shown strong revenue growth and positive fundamentals, making it an attractive growth stock.
• ✋ The company's stock price significantly increased in 2017 and 2018 due to higher revenue growth and positive outlook.
• 🥺 Convertible bonds issued by 51job.com may lead to dilution and skew earnings data, impacting the company's valuation.
• 🐕‍🦺 The company's growth strategy aligns with the shift in China towards a service-oriented economy, providing potential opportunities.

Questions & Answers

Q: What is 51job.com's revenue growth rate?

51job.com has experienced a revenue growth rate of 32% per year, with strong growth in recent quarters.

Q: Are there any dilutions or dilution concerns for 51job.com?

There has been minimal dilution, with stable numbers of shares and no significant decrease in book value. However, convertible bonds that the company issued in the past may lead to dilution in the future.

Q: What are 51job.com's growth strategies?

51job.com's management aims to increase customer spending, upsell and cross-sell, and offer online courses to improve their database of job seekers. The company expects to benefit from China's shift towards a more service-oriented economy.

Q: Is 51job.com overvalued or undervalued?

Based on a valuation model, 51job.com is currently overvalued compared to its present value of $22 per share. However, if the company achieves a growth rate of 25.1% per year and a valuation of $20 in 2023, it would be considered undervalued.

Summary & Key Takeaways

• 51job.com is a Human Resources business in China, primarily operating online but with some offline offices.

• The company has experienced positive revenue growth, with a current growth rate of 32% per year.

• Fundamentals, including operating income, number of shares, book value, and cash flows, are all positive indicators for the company.